What are Tolerance Days in the Planning Tab Used For?

Tolerance days are simply a buffer used on days for products to be received, this affects the actual due dates given to the Order Recommendation after running the MRP. This is a Optional setting and does not need to be used. Tolerance days can be defined in the Planning Data tab of the Item Master […]

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What is a BOM in SAP?

In SAP a BOM stands for Bill Of Material. A Bill of Material is a list of all the materials (and their quantities) that are required for making or assembling a product. The BOM is used in discrete manufacturing and production planning. BOM structure Header – contains identifying data like the name, material, warehouse, revisions, […]

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What does FOB stand for?

FOB is an acronym for Freight On Board. FOB is related to the shipping of goods. It defines which party (the buyer or the seller) is responsible for the cost of shipping and loading, and who has ownership of the goods while in transit. Fox example the two party’s may agree that once a pallet […]

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Material Requirements Planning

MRP stands for Material Requirements Planning. MRP is an inventory control and production planning system (usually sofware) that allows a company to managing their manufacturing process. Material Requirements Planning or MRP is an important business tool to help organizations plan manufacturing, purchasing, and delivery activities in order to maintain optimal inventory levels. If you purchase […]

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What is the MRP (Material Requirements Planning) Module?

The MRP (Material Requirements Planning) Module effectively manages your material requirements in the manufacturing process. A planning wizard helps you define planning scenarios that consider existing inventory, sales orders, purchase orders, production orders, and forecasts, to create material ordering recommendations that enable you to fulfill your commitments to your customers. This is a screenshot of […]

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